LCACM

U.S.-China Trade Spat: Warning of Worse to Come?

During the 1930 Depression, Smoot-Hawley hurt the US economy as the US used to enjoy trade surplusses. When a country enjoys trade surplusses Protectionism hurts its exports. However, when a country has trade deficts, common sense indicates that Protectionism helps the economy. Currently the US is suffering from huge trade deficits, so a Smoot-Hawley type act would greatly benefit US manufacturers.
If Defense spending is good, why is Protectionist legislation considered bad?
Without strong Protectionism, the US Treasury will not have the tax resources to support a strong Defense in these highly troubling times.

Fixing China Trade Is Key to a Sustainable Recovery

The biggest beneficiaries of the trade deficits are the US based importers that buy cheap Chinese goods produced and sell the goods in the US. To keep the voters from demanding fairness the importers pay large sums to the election campaigns of politicians who support one sided trading. The voters meanwhile are too engrossed in the private lives of entertainers such as M. Jackson, or sports personalities. Since this situation is unlikely to change in the near future, this predictable trend of ever greater deficits and fiscal mismanagement presents itself with some stock trading opportunities. It would be better to focus on the stock trading opportunities this situation presents as we cannot change the behavior of selfish politicians or intellectually lazy voters, in the short term.

What Increased U.S. Savings Means for China

Population of Japan, US and China are approximately 130Million, 300Million and 1200Million respectively. Japan has very small quantity of natural resources and land mass on a per capita basis, whereas both China and US have substantial amounts. Trying to understand what might happen in China based on what happened in Japan in the 1990's, fails to take into consideration the effects of poupulation and natural resources on financial outcomes.
Trying to make financial predictions while totally ignoring population size, land mass and available natural resources will lead to simplistic conclusions which have a higher probabilty of being wrong than right.

China Counterattacks With a 'Buy China' Policy

It seems it is better to have trade wars rather than wars that kill people and destroy economies. Currently US is wasting huge resources in Iraq due to a war based on faulty intelligence relating to WMDs.
Each country needs to do what is in it's best interests and not based on the interests of Corporate lobbysts. Currently all Democratic countries are suffering, due to the fact that politicians need cash to get re-elected and this is usually supplied by Corporate lobbysts. As Chinese leaders do not have to worry about re-elections, they are pursuing their national interests rather than listen to lobbysts in return for campaign funds. The Chinese have unseated US from being the largest creditor and subjugated it to become the largest debtor. The Chinese leadership can proudly point to the 2 Trillion Dollar reserves they have amassed. Compare this wih the 10 Trillion debt that the US has amassed. This has happended in a span of barely 25 years or so.
So the US needs to rethink its trade policies. It should be the duty of the US Government representatives to ensure that its citizens can find meaningfull employment, and align its trade policies with this goal.

Will China Drop U.S. Debt? Unlikely

It is strange that now the Chinese government is threatening to dump US Treasuries with the excuse that the US budget deficit is so high. If one looks at the root of the current meltdown it is the overproduction and dumping of goods by the Chinese, aided by the Free Trade policies of the US government and the WTO. The only reason the Chinese purchase US Treasuriies is to funnel cheap credit into the US economy so that US consumers can keep purchasing Chinese goods with Chinese credit. If China were to stop buying US debt and instead use their Trade surplus for their own onfra development, it would bring the both the US government and the US consumer /taxpayer/voter to their senses. This would be a win/win for all.

Soaring Retail Sales in China Demonstrate Economic Shift

Since the Chinese have been so successfull economically while the Western economies are rapidly imploding, it is time for the Western world to reflect on the current policies and change course. It goes without saying that debtors must listen to their creditors whether they like to or not.

Will China Stay the Capitalist Course?

The success of Japan and Germany has nothing to do with capitalism or misery. Throught history they have been successful due to their hard work and intelligence. As a counter point I would like to point out that Africa has the highest possible misery level for an extended period of time, and yet it has only seen economic degradation.

Global Impact of the Fed Funds Slash

Freedoms Truth: The title of the article is "How Beiging Could Stimulate Consumption" Threfore, it is to be presumed that the advice is targetted to Beiging and not the US government as your comments imply. Since Communist China has contributed to the Meltdown due to their perennial dumping on World markets, it makes sense for the author of the article to suggest to Beiging to take up some of the responsibility, and do the needful.